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Spotlight

Data Centers Are the New NIMBY Battleground

Packed hearings. Facebook organizing. Complaints about prime farmland and a disappearing way of life. Sound familiar?

A data center and houses.
Heatmap Illustration/Getty Images

Solar and wind companies cite the rise of artificial intelligence to make their business cases after the United States government slashed massive tax incentives for their projects.

But the data centers supposed to power the AI boom are now facing the sort of swift wave of rejections from local governments across the country eerily similar to what renewables developers have been dealing with on the ground over the last decade. The only difference is, this land use techlash feels even more sudden, intense, and culturally diffuse.

What’s happening is simple: Data centers are now routinely being denied by local governments in zoning and permitting decisions after local residents turn against them. These aggrieved denizens organize grassroots campaigns, many with associated Facebook groups, and then flood city council and county commission hearings.

Just take this past week. Last Thursday, Prince George’s County, Maryland, paused all data center permitting after a campaign against converting an abandoned mall into a data center gained traction online, with a petition garnering more than 20,000 signatures. On Monday, faced with a ferocious public outcry, Google rescinded a proposal to build what would’ve been its second data center in Indiana in Franklin Township, a community in southeastern Indianapolis – a withdrawal requested mere minutes before the township council was reportedly going to reject it.

That same day, the rural Illinois town of DeKalb denied a solar company’s request to build a “boutique data center” on the same site as a previously-permitted solar farm. And on Tuesday, the small city of Howell – located smack between Lansing and Detroit, Michigan – denied a data center proposed by an anonymous Fortune 100 company. Apparently, so many people showed up to voice their opposition to the project that the hearing was held in a high school gymnasium.

Opponents cite many things in their arguments against development, some unique to the sector like energy and water use, and others familiar to the solar and wind industry, like preserving prime farmland or maintaining a way of life.

These arguments are incredibly salient, as polling conducted by Heatmap News has revealed: less than half of Americans would ever support a data center coming near them, and this technology infrastructure is less popular than any form of renewable energy. Digging into the cross-tabs of that poll, data centers are unpopular with essentially all age demographics, and arguments against the facilities – like “they use too much water” or “they consume too much electricity” – get relatively similar agreement from registered Democrats and Republicans alike.

Ben Inskeep, a clean energy advocate in Indianapolis, told me he started fighting data centers last year after he became aware of the total power needed to fuel the rising number of projects in the state. His advocacy organization, Citizens Action Coalition of Indiana, previously weighed in on rate hikes and electricity generation decisions. Now, they’re tracking more than 40 data center projects they say are proposed in the state and getting involved in the fight on the ground against them.

Inskeep told me that, from his point of view, the primary support for data centers comes from local governments and municipally-funded works like schools and health facilities that are facing slashed budgets. In some cases the projects are being rejected despite representing millions – even billions – in capital investments and potential tax revenues so large that municipal governments are put between a rock and a hard place as they’re pressured by a weakening economy and state funding cuts.

That’s what happened in Indianapolis. Earlier this month the school district that would’ve been funded by the now-rejected Google data center came out in support of the project, declaring it would welcome new tax revenue, and said it would also lead to new educational partnerships with the tech giant. But none of that mattered. Some local officials even lambasted their colleagues' support as unwarranted, a lashing out that reminds me of what happens to pro-solar officials in Ohio.

Heatmap News has been tracking contested data center projects since the spring of this year and has found almost 100 projects under development across the country that are being actively fought by local organizers, citizens advocacy groups, and environmental organizations. The data is preliminary and likely an undercount.

Still, there’s lots to glean from it. Crucially, as we’ve seen with renewable energy development, data center opposition crops up most often in tandem with the number of projects proposed and constructed. This is only logical: the more of something that is built in a place, the more likely people are to say, “We’ve built enough of that.” This is why Virginia is the top state when it comes to data centers being opposed – it’s a hub that’s seen development spike for far longer than elsewhere in the United States.

I believe that as data center project proposals continue to rise across the country, we’ll see in parallel rising hostility to their development – potentially much larger than anything renewable energy has ever faced. It will undoubtedly also be a problem for anyone in solar or wind who is riding on an AI boom to add demand for their projects.

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Spotlight

The 5 Fights to Watch in 2026

Spoiler: A lot of them are about data centers.

Data centers and clean energy.
Heatmap Illustration/Getty Images

It’s now clear that 2026 will be big for American energy, but it’s going to be incredibly tense.

Over the past 365 days, we at The Fight have closely monitored numerous conflicts over siting and permitting for renewable energy and battery storage projects. As we’ve done so, the data center boom has come into full view, igniting a tinderbox of resentment over land use, local governance and, well, lots more. The future of the U.S. economy and the energy grid may well ride on the outcomes of the very same city council and board of commissioners meetings I’ve been reporting on every day. It’s a scary yet exciting prospect.

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Hotspots

A Texas Data Center Dispute Turns Tawdry

Plus a resolution for Vineyard Wind and more of the week’s big renewables fights.

The United States.
Heatmap Illustration/Getty Images

1. Hopkins County, Texas – A Dallas-area data center fight pitting developer Vistra against Texas attorney general Ken Paxton has exploded into a full-blown political controversy as the power company now argues the project’s developer had an improper romance with a city official for the host community.

  • For those who weren’t around for the first go, here’s the low-down: The Dallas ex-urb of Sulphur Springs is welcoming a data center project proposed by a relatively new firm, MSB Global. But the land – a former coal plant site – is held by Vistra, which acquired the property in a deal intended for remediating the site. After the city approved the project, Vistra refused to allow construction on the land, so Sulphur Springs sued, and in its bid to win the case, the city received support from Texas attorney general Ken Paxton, whose office then opened an antitrust investigation into the power company’s land holdings.
  • Since we first reported this news, the lawsuit has escalated. Vistra’s attorneys have requested Sulphur Springs’ attorney be removed from the court proceedings because, according to screenshots of lengthy social media posts submitted to the court, the city itself has confirmed that the attorney dated a senior executive for MSB Global as recently as the winter of 2024.
  • In a letter dated December 10, posted online by activists fighting the data center, Vistra’s attorneys now argue the relationship is what led to the data center coming to the city in the first place, and that the attorney cannot argue on behalf of the city because they’ll be a fact witness who may need to provide testimony in the case: “These allegations make awareness of negotiations surrounding the deed and the City’s subsequent conduct post-transaction, including any purported ‘reliance’ on Vistra Parties’ actions and omissions, relevant.”
  • I have not heard back from MSB Global or Sulphur Springs about this case, but if I do, you’ll be hearing about it.

2. La Plata County, Colorado – This county has just voted to extend its moratorium on battery energy storage facilities over fire fears.

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Q&A

Are Renewables Really Benefiting From the Data Center Boom?

A catch-up with kWh Analytics’ Jason Kaminsky.

Jason Kaminsky.
Heatmap Illustration

This week’s conversation is a catch-up chat with Jason Kaminsky of kWh Analytics, an insurance firm that works with renewable energy developers. I reached out to Kaminsky ahead of the new year because as someone with an arms-length distance from development, I find he is able to speak more candidly about market dynamics and macro-level trends – as well as the fears many have in rural communities about energy project failures, like battery fires. Seeing as the theme this week felt like “data centers forever,” I also thought it would be good to get up to speed on what he’s most focused on in that space, too.

The following conversation has been lightly edited for clarity.

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